The council tonight gave Mayor Gary Waters authorization to execute a contract between the city and Protective Securities, a division of ProEquities Inc., to get obligation warrants up to $35 million.

However, the school district is looking at possibly getting a maximum of $40 million in total funding for the construction projects that include a new elementary school somewhere east of Interstate 65.

School board President Rick Rhoades said in an interview tonight the district may acquire funding through other loans. The entire amount including bonds for the district would not exceed $40 million, he said.

"We're going to spend it on a new elementary school and basically rebuild Valley Elementary," Rhoades said tonight.

The school district is also looking at, "in some way, shape or form to bring a middle school to a more central location," he said about plans to discontinue Riverchase Middle School and transition Valley Intermediate into the new location.

The district's plans also include "doing fairly extensive renovations to Pelham High School," Rhoades said.

The council's resolution approved tonight states that Protective Securities will serve as the underwriter and the city would enter into a purchase contract concerning the sale of the warrants. Council President Rick Hayes said the transaction would happen July 30.

"We are as a city basically acting as a conduit helping to provide funding for the Board of Education," Hayes said.